•What
comparison are
they making
about Obama
and Why? Do
you feel
confident in the
new leadership?
• What challenges does
President Elect Obama face
that are similar to FDR?
PROMPT
• How did the New Deal Respond
to the problems of the
depression and change the role
of the federal government?
Prompt
• What is the goal of Social
Security? Should it continue?
PROMPT
• What New Deal legislation do
you feel was the most
important and why?
• What comparison are they making about
Obama and Why? Is it a positive one or
negative?
Franklin D. Roosevelt
• New Deal
• Election of 1932
• New President New Ideas
Franklin D. Roosevelt
• PHASE ONE
• First 100 days
• Depression hit hard
Franklin D. Roosevelt
• March 1933 and June 1933
• Legislation
• 3 basic categories of
Legislation
•Relief
•Reform
•Recovery
Franklin D. Roosevelt
• First 100 days
• Banking Holiday for 1 week
• Encourage people to use
banks
Franklin D. Roosevelt
• First order of business
• “Bank holiday” closed all
banks
• Federal inspectors
examined all banks
Franklin D. Roosevelt
• Glass-Stegal banking act
• Established Federal Deposit
Insurance Corporation
(FDIC)
• Insured accounts up to
2,500 dollars
Franklin D. Roosevelt
• Those deemed solvent
reopened
• Two thirds reopened
• Restored confidence in
banking industry
Prohibition Repealed
FIRESIDE CHATS
Relief Programs
• Civilian Conservation Corp
• Federal Emergency Relief
Act
• Civil Works Administration
Relief
• Civilian Conservation Corps
• (CCC)
1933
put young men to work
• Ages between 18-28
• Forest and parks
• Popular of all New Deal
• Temporary employment about
1 year
• Lasted until 1934
Relief
• Federal Emergency Relief
Act (FERA)
• Loans to states to create
programs to reduce
unemployment
2. Federal Emergency & Relief
Administration (FERA):
• direct relief ($, clothes) to people
FERA distributes clothing
in Tennessee
RELIEF
• Civil Works Administration
(CWA) was only a year
• Temporary program
–Get people back to work
–Winter 1934
–Paid high wages
• The CWA's four million workers laid 12
million feet of sewer pipe and built or
improved 255,000 miles of roads, 40,000
schools, 3,700 playgrounds, and nearly
1,000 airports (not to mention 250,000
outhouses still badly needed in rural
America
Relief
• Created Public Works
Administration (PWA)
• Building projects including
dams and buildings
• Not as successful business
did not trust government
• National Industrial Recovery Act in June
1933 established the PWA
• The PWA spent over $6 billion
PWA
• Between July 1933 and March 1939 the
PWA funded and administered the
construction of more than 34,000 projects
including airports, large electricitygenerating dams, major warships for the
Navy, and bridges, as well as 70% of the
new schools and one-third of the hospitals
built between 1933–1939.
Lasting PWA projects
• Camp David
Doubleday Field
Dealey Plaza
FCA
• Farm Credit Association :
• Helped 40% of farms that were mortgaged
by providing low interest loans through a
Federal Land Bank for 50 year terms
RECOVERY
WPA
NIRA
AAA
FHA
FHA
–Federal Housing Authority
• FHA
• Home loans at discounted
rates
• Increased home ownership
to low and middle class
3. Works Progress
Administration (WPA):
• gave jobs building public buildings and roads
• also hired artists & writers
WPA workers creating a flood
Control dike in Arkansas
Works Project Administration
• Worked on smaller projects than the PWA
• Hired unskilled labor and those on relief
• Built things like sewers, city halls etc.
3. Agricultural Adjustment
Act (AAA)
• farmers paid to NOT grow crops
Texas farmers
receive AAA
check
• Increase farm income by
reducing crop growing
• Paid farmers not to grow
crops
• Tax on food processors
paid the shortfall
• By 1935 farm income raised
by 50 percent
• However some small and
tenant farmers were forced
off land
Recovery
• National Recovery Act (NRA)
• “codes of fair competition”
• Minimum wage(30 -40 cents)
• Maximum hours(35-40)
• Price fixing controls
• Collective bargining
Wagner Act
• 1935, National Labor Relations Act,
called the Wagner Act,
• legalized collective bargaining and
closed shops.
2. National Recovery
Administration (NRA):
• set industry codes for production, wages,
prices & working conditions
• NRA collapsed before it was
deemed unconstitutional by
Supreme Court
NEW Deal
•
•
•
•
FDR appoints 1st woman: Francis Perkins
For Secretary of State
Appointed African Americans to posts
Eleanor protested Jim Crow Laws
Critics Early on
• New Deal agencies were giving
increasing power to the federal
government.
• •The Supreme Court declared the NIRA
unconstitutional because it gave the
President more local control
• Struck down the tax that funded AAA
Second New Deal
• The Second New Deal included more
social welfare benefits, stricter controls
over business, stronger support for
unions, and higher taxes on the rich.
• •New agencies attacked unemployment.
The Works Progress Administration
(WPA) employed more than 8 million
workers
FSA
• The Resettlement Administration and
later the Farm Security Administration
(FSA) helped migrant farmers,
sharecroppers, and tenant farmers who
were ignored by the AAA.
• •
• •
REA
• The New Deal also brought electricity
to rural America. The Rural
Electrification Administration (REA)
offered loans to electric companies and
farm cooperatives for building power
plants and extending power lines.
Reform
–TVA:Tennessee Valley
Authority
–Social Security
–NHA
–FDIC
–SEC
Stabilizing financial institutions
• FDR wanted to restore public
confidence in the nation’s banks.
• Congress passed the Emergency
Banking Act, which authorized the
government to inspect the financial
health of all banks.
• Congress also passed the Glass-Steagall
Banking Act of 1933. This act established a
Federal Deposit Insurance Corporation
(FDIC) to insure bank deposits.
1. Federal Deposit Insurance
Corp. (FDIC)
• insured savings accounts in gov’t approved
banks
Logo banks display today for
FDIC today
TVA
– Today, the TVA ranks as America's
largest public power company, with a
generating capacity of 31,658
megawatts.
– The TVA has become a major
recreation provider as well
1. Tennessee Valley Authority
(TVA):
• helped the valley by controlling floods and
providing electricity
• Rural area void of electricity
• Series of dams and locks
• Made river navigable
• Generated electricity for
entire rural region
• Greatly improved standard
of living
• Conflict between large
utilities and government
Second Term?
• What were some of the shortcomings
and limits of the New Deal?
• •What were the chief complaints of
FDR’s critics inside and outside of
politics?
• •How did the court-packing fiasco harm
FDR’s reputation?
Critics
• The Fair Labor Standards Act covered
fewer than one quarter of all gainfully
employed workers. It set the minimum
wage at 25 cents an hour, which was
below what most workers already
made.
Critics
• FDR also refused to support a bill to
make lynching a federal crime because
he feared that his support of the bill
would cause southern Congressmen to
block all of his other programs.
• Many federal relief programs in the
South reinforced racial segregation and
because the Social Security Act
excluded farmers and domestic
workers, it failed to cover nearly two
thirds of working African Americans.
Critics
• Debate about the New Deal continues
today. Critics believe that the programs
violated the free market system.
Supporters believe that providing relief
to the poor and unemployed was worth
the compromise.
FDR’s Greatest Mistake
Packing the Supreme Court
What?
•Increase the # of Supreme Court justices from 9
to 15
Why?
•Kept declaring his programs
unconstitutional (including NRA, AAA, SEC,
etc.)
His Greatest Mistake
Packing the Supreme Court
Results?
•Public grew
angry (FDR
taking too much
power)
•FDR passed
much less
legislation after
this
Supreme Court Exterior
Other Critics
• Father Charles
Coughlin
–Radio Priest – radio
show reaching 10
million
–Originally supported
FDR and New Deal
–1934 - National Union
for Social Justice
–1934 - National Union for Social
Justice
»Called FDR “Franklin “Double
Crossing” Roosevelt and a
“betrayer and liar”
»Coughlins ideas were reckless
»1942 ordered by Catholic Church
to stop broadcasting show.
More Critics
• Huey Long
–US Senator from
Louisiana
–“Redistribution of
Wealth”
»Only could make up
to 1 million dollars
» .
HUEY LONG
»The rest would be collected by
government and “redistributed”
to give every American family a
minimum “household estate” of
$5000 dollars and minimum
income of $2500 dollars.
»Also called for:
»Shorter working hours, more vet
benefits, education payments
and pensions for elderly.
More Critics
• Dr. Francis Townsend
–Wanted
more done
for older
Americans
in the New
Deal.
•
THE SECOND NEW DEAL
• Although the economy
had improved during
FDR’s first term (19321936), the gains were
not as great as
expected
• Unemployment
remained high and
production still lagged
Second New Deal
• Second New Deal 1935
• Relief and Recovery
• Federal Arts Project
• First time gave aid to artists
• Money for concerts to small
towns
NEW Federal Programs of 2nd New
Deal
• WPA Works Progress Administration
• Social Security Act
• National Labor Relations Act
FHA
Repaired business in Childersburg, Alabama
• FHA – Federal
Housing
Administration
provided home
loans, home
mortgages and
repairs
WORKS PROGRESS
ADMINISTRATION
• Helping urban workers was
critical to the success of the
Second Hundred Days
• The WPA set out to create as
many jobs as possible as
quickly as possible
• Between 1935-1943, the WPA
spent $11 billion to give jobs to
8 million workers
WPA BUILDS AMERICA
The Davis Street School Extension in Atlanta under
construction as part of the Works Progress
Administration Program, November 2, 1936
• WPA
workers
built 850 airports,
651,000 miles of
roads and streets,
and 125,000 public
buildings
• The WPA also hired
artists, writers and
photographers to
create art
NATIONAL YOUTH
ADMINISTRATION
• The National Youth
Administration (NYA) was
created to provide
education, jobs and
recreation for young
people
• Getting young people off
the streets and into
schools and jobs was a
high priority for the NYA
Second new deal
• National Labor Relations
Act creation of NLRB
• Allowed workers to elect
• Which union they wanted to
join
IMPROVING LABOR
RELATIONS
The NLRA was also called
the Wagner Act
• In the Second New Deal
FDR helped pass the
National Labor
Relations Act (NLRA)
• This legislation
protected workers,
ensured collective
bargaining, and
preserved the right to
unionize
CONGRESS PROTECTS
WORKERS
• In 1938, Congress
passed the Fair
Labor Standards
Act which set
maximum hours at
44 per week and
minimum wage at
25 cents per hour
Second New Deal
• Social Security
• Pension supported by taxes
for elderly
• Small pension for elderly
• Unemployment
compensation
• In August 1937, the economy collapsed
again. Industrial production and
employment levels fell.
• •The nation entered a recession, a
period of slow business activity. The
new Social Security tax was partly to
blame. The tax came directly out of
workers’ paychecks, through payroll
deductions.
• To fund the New Deal, the government
had to borrow massive amounts of
money. As a result the national debt
rose from $21 billion in 1933 to $43
billion by 1940.
Reform
• SEC (Security and
Exchange Commission)
• Regulated stock market
• No insider trading
2. Social Security Act
pensions for retired workers,
unemployment insurance, welfare
•
FDR signs SSA
• Support for survivors
• Health insurance
• Health insurance was
dropped in a compromise
• Today, about 160 million people work and
pay Social Security taxes and about 52
million people receive monthly Social
Security benefits.
• Social Security replaces about 40 percent
of an average wage earner’s income after
retiring
• The current Social Security system works
like this: when you work, you pay taxes
into Social Security. The tax money is
used to pay benefits to:
• People who already have retired;
• People who are disabled;
• Survivors of workers who have died; and
• Dependents of beneficiaries.
Medicare
• Medicare was added in 1965
• Medicare is a federal program that helps
to pay for older Americans' health costs.
Some people incorrectly consider
Medicare to be part of the Social Security
system because taxes that finance part of
Medicare are lumped in with those that
pay for Social Security
Retirement
• Social Security's retirement program
provides a lifetime monthly income for
qualified workers once they reach their full
retirement age. Depending on when they
were born, that age ranges from 65 to 67.
The amount of retirement benefits that a
worker receives depends on his or her
income while working. Workers also have
the option of receiving a lower monthly
income starting at age 62.
Survivors
• Social Security's survivors program
provides a monthly lifetime income to the
surviving spouse of a deceased worker
once he or she reaches retirement age.
The amount of the monthly benefit
depends on both spouses' income while
they were working. The survivors program
also pays benefits to children under the
age of 18 and the surviving spouse caring
for them.
Disability
• Social Security also pays lifetime monthly
income to workers who are disabled and,
in some cases, to their spouses and
children under the age of 18. These
benefits depend on the worker's earning
history
NEW DEAL AFFECTS
MANY GROUPS
• First Lady Eleanor
Roosevelt helped women
gain higher political
positions during the New
Deal
• Eleanor was influential in
her role as advisor to the
president
• Frances Perkins became
America’s first female
cabinet member (Labor)
Eleanor &
Franklin
Minorities
• African –Americans hard hit, programs
were segregated
• Tenant farmers(sharecroppers) were often
African American
• Relief payments lower
• Indian Reorganization Act 1934: allowed
tribal control over land
AFRICAN AMERICANS
DURING THE NEW DEAL
• The 1930s
witnessed a
growth of activism for
black Americans
• A. Philip Randolph
became head of the
nation’s first all-black
union – the Brotherhood
of Sleeping Car Porters
AFRICAN AMERICANS GAIN
POLITICAL POSITIONS
FDR appointed
over 100 African Americans
to positions within the
government
• Mary McLeod Bethune
headed the division of
Negro Affairs of the NYA
• Despite these gains, FDR
was never fully committed
to Civil Rights
Bethune
NATIVE AMERICANS MAKE
GAINS
• Native Americans made
advances during the 1920s
& 1930s
• Full citizenship granted in
1924
• The Reorganization Act of
1934 gave Natives more
ownership of reservations
• Policy was moving away
from assimilation towards
autonomy
WPA Cultural Arts programs
CULTURE IN THE 1930s
Movies provided an escape from
the hardships of the Great
Depression
MOVIES:
• By the late 1930s, 65% of
Americans were attending
the movies at least once
per week at one of the
nation’s 15,000 movie
theaters
• Comedies, lavish
musicals, love stories and
gangster films dominated
the movie industry
MOVIE
STARS
• A new era of
glamour in
Hollywood was
launched with stars
like Clark Gable,
Marlene Dietrich and
James Cagney
1930s
FAMOUS FILMS OF
THE 30s
• One of the most famous
films of the era was Gone
with the Wind (1939)
• Other notable movies of
the era included The
Wizard of Oz (1939) and
Snow White and the
Seven Dwarfs (1937)
RADIO: THE
ORIGINAL
ENTERTAINMENT
• Sales of radios greatly
increased in the 1930s,
from 13 million in 1930
to 28 million by 1940
• Nearly 90% of
American homes
owned a radio
Families spent hours listening to the radio
ROOSEVELT’S
FIRESIDE CHATS
• FDR communicated
to Americans via
radio
• His frequent
“Fireside Chats” kept
Americans abreast of
the government’s
efforts during the
Depression
POPULAR RADIO
SHOWS
• Popular radio shows
included comedies with
Bob Hope, Jack Benny,
and the duo of Burns
and Allen
• Soap operas (named
because they were
sponsored by soap
companies) ran in the
mornings, kids shows in
the afternoon and
entertainment at night
Benny
H
o
p
e
Burns
Allen
FAMOUS RADIO
MOMENTS
• Orson Wells created a
radio special called War of
the Worlds
• It was an epic drama about
aliens landing in America
• Unfortunately, many
thought it was a news
broadcast and panicked
LIVE NEWS
COVERAGE
• Radio captured news as
well as providing
entertainment
• One of the first
worldwide broadcasts
was the horrific crash of
the Hindenburg, a
German Zeppelin (blimp),
in New Jersey on May 6,
1937
• Such immediate news
coverage became a
staple in society
The Hindenburg caught fire and was utterly
destroyed within a minute Of the 97 people on
board, 13 passengers and 22 crew-members
were killed
ART DURING THE GREAT
DEPRESSION
• The Federal Art Project
(branch of the WPA) paid
artists a living wage to
produce art
• Projects included murals,
posters and books
• Much of the art, music and
literature was sober and
serious
WPA Art – “Democracy . . .a
Challenge” – artist, date unknown
ARTISTS
HERALDED
• Painters like Edward
Hopper, Thomas Hart
Benton, and Iowa’s Grant
Wood were all made
famous by their work in
the WPA program
• Photographer Dorothea
Lange gained fame from
her photos during this era
(featured throughout this
presentation)
Wood’s American Gothic is perhaps the most
famous piece of the era (1930)
A Political Partnership
• Franklin Roosevelt
• Appealing blend of
cheerfulness, optimism, •
and confidence
•
• An effective
communicator (ex.
fireside chats)
•
• A reform-minded
Democrat
•
• Believed the government
could solve economic
and social problems
• Eleanor Roosevelt
“Eyes and ears” of her husband
Directed efforts to solve several
major social issues (ex.
lynching of African Americans)
Wrote her own newspaper
column
Had the trust and affection of
many Americans
The New Deal - Pros and Cons
Pros
•Restored optimism and hope to Americans
•Provided necessary relief to many
Cons
•Did not really fix the depression
•Left the nation with much debt
•Left people too dependent on government (?)
• What factors led to the recession of
1937, and how did the Roosevelt
administration respond?
• •What triumphs and setbacks did
unions experience during the New Deal
era?
• •What effects did the New Deal have on
American culture?
• •What lasting effects can be attributed
to the New Deal?
Questions:
• Why was FDR's administration labeled the "New
Deal?" What were its three goals?
• What sort of relationship did President Roosevelt
develop with the press and the public?
• What role did the radio play in Depression-era
America?
• What role did Mrs. Roosevelt play in her
husband's administration?
• Why did FDR engage in a series of "Fireside
Chats" with the American people?
End of New Deal
• Recession of 1937
– Caused by cuts in federal spending
– Federal Reserve responded
– Industrial production declined
• By 1938 New Deal had
essentially come to an end.
• World Crisis beginning to emerge
• FDR turned his attention to
preparing a reluctant nation for
war.
Effects of New Deal
• New groups, ie workers, farmers,to
positions that could challenge power
• Increased regulation of economy
–Stock market
–Banking system
–Welfare system
–Social security
Programs today
•
•
•
•
•
•
•
•
Social Security
NLRA National Labor Relations Admin
TVA
FDIC
SEC
Federal Crop Insurance Corporation
Fair Labor Standards
REA Rural Electrification Admin
Success or Failure?
1. Reduced unemployment
by 7 million
2. Soil conservation
schemes.
3. The Stock Market and
banks recovered.
4. Transformed the
Tennessee valley.
5. Roosevelt was re-elected.
1. Still 6 million out of
work in 1941.
2. The numbers fell due to
enlistment and
rearmament in WW2.
3. Black people were
segregated from white.
4. Women were excluded
from the New Deal.
5. Tennessee benefited but
many areas were still
suffering.